Form 4: Kontoor Brands Director Robert K. Shearer Reports Changes in Beneficial Ownership

Director Robert K. Shearer reports acquisition of phantom stock units in Kontoor Brands Deferred Savings Plan.

Summary

• Robert K. Shearer, a director of Kontoor Brands, Inc., filed a Form 4 to report changes in beneficial ownership.
• The report indicates the acquisition of 719.0433 phantom stock units (PSUs) under the Kontoor Brands Deferred Savings Plan For Non-Employee Directors Plan on June 28, 2024.
• These PSUs are to be settled in cash upon the reporting person's retirement.
• The price of each PSU was $66.06, reflecting the deferred fees per PSU.
• Following the reported transaction, Shearer beneficially owns 33,965.0913 PSUs.
• The filing indicates that these columns are not applicable to this particular filing.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard director compensation practices and alignment of interests with shareholders.

Positives

• The acquisition of phantom stock units demonstrates the director's continued investment in the company's long-term success.
• The deferred savings plan allows directors to align their interests with those of the shareholders.

Future Outlook

The phantom stock units will be settled in cash upon the reporting person's retirement.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Director compensation through deferred savings plans and phantom stock units is a common practice among publicly traded companies.
• Companies like Levi Strauss & Co. and PVH Corp also utilize similar compensation strategies to align director interests with shareholder value.
• The specific terms and conditions of these plans can vary, but the underlying principle of incentivizing long-term performance remains consistent.

Stakeholder Impact

• The filing provides transparency to shareholders regarding director compensation and ownership.

Key Dates